Increasing Profit Margins for Ethanol

carrie muehling

Ethanol production has become a key market for U.S. corn, but margins are often tight. New technology would allow existing ethanol plants to convert a part of their production into making plant-based chemicals that have higher values, with profits that could be passed along to corn growers.

“We know that ethanol today is a commodity that has been really pressed down with pricing and margins,” said Joaquin Alarcon, President and CEO of Catalyxx. “So, this technology allows a plant to convert part of their production into chemicals that have higher value and provide significant profits related to that.”

Alarcon told participants at the 2018 Corn Utilization and Technology Conference in St. Louis that higher end butanol and other alcohols are examples of fuels that could provide at least $1.00/gallon of additional profit to the ethanol producer. Alarcon said it’s an exciting prospect as these are green, renewable chemicals with a cost of production that is the lowest in the industry. He said a facility could be built onto an existing ethanol plant or as a standalone processor that would transport ethanol from the Midwest.

To learn more, listen to Chuck’s interview here: Interview with Joaquin Alarcon at CUTC18

2018 Corn Utilization & Technology Conference Photo Album

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